Lionel Train Company has the following information for this year and next year.
                                                         Current                    Next
                                                              Year                      Year
Trains purchased                            40,000                  48,000
Trains scrapped in production       4,000                     3,000
Trains sold                                       36,000                   45,000
Average Selling Price                   $150.00                 $140.00
Average Cost per Train               $100.00                 $  90.00

• Calculate the Growth, Price and Productivity variances for next year.
• Indicate if the variance is favorable (F) or unfavorable (U).
• Reconcile the revenue, costs and income for the current and next year.

4A – Growth
4B – Price-Recovery
4C – Productivity
4D – Reconcile the variances in income from the current year to next year.

Current Next

Year Growth Price Productivity Year

Revenue

Cost
Income

4E – What conclusions can you draw from the variance analysis

Answer rating: 100% (QA)

Solution Lionel Train Company A Calculation of Growth Next year This year Sales Last year sales Last ... View the full answer